Below is a brief note from CEO Keith McCullough on why we're adding Dave & Buster's (PLAY) to the short side of Investing Ideas today:
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Waiting and watching for low quality companies to bounce (or get squeezed!) to the top-end of the @Hedgeye Risk Range is a #process too. Here's Restaurants analyst Howard Penney's take on yesterday’s PLAY's squeeze: "Given the trends in the quarter just reported, the only reason to think the stock is rallying off the poor numbers is that the future of this business is going to be driven by virtual reality (VR). I understand that a headline beat with a high short interest stock (SI = 16%) is a toxic combination, but PLAY is up 16% over the past month on the VR theme. There was nothing in the quarter that suggests to me that the business is getting better. We are staying SHORT." That's pretty clear (Howard tends to be!). So is today's immediate-term #overbought signal. KM |